Not sure where to turn now

simonts

My remortgage application with Abbey as recommend by broker was declined today.

Problem being I need £130,000 on a £155,000 house. Abbeys words were last week you would have had the AIP this week criteria is a lot tighter and getting worse..awesome.

I am a single occupant since my partner moved out on £25,000 a year...seems my only choice left is to get robbed on the existing lenders SVR once the fix ends.

Is it worth trying another broker? however this was L&C

lightspeed

Hi,

I earn about the same as you and have a mortgage with the alliance and leicester slightly less than you require. I do have a lot more equity in the property but it might be worth a try.

Just had a look at their borrowing calculator and with a 155k house and a 130k mortgage needed it says that you could "potentially" borrow 116k.

I know that their underwriters can offer upto 5% more (prior to the credit crunch - not sure now), that would give you 121800. Still short but you never know!

Hope that helps.

beecher

Have you gone to your existing lender to see what - if anything - they can offer you? Five times salary is a lot though - good luck.

herbiesjp

There might be one or two lenders that could look to agree this for you, but I would suggest looking very carefully at the figures as that is over 5 times your income, without taking into account any other debts you may have.

Are you sure it is affordable?

sassybooboos

i applied in feb for mortgage with abbey and it got declined and i was only asking for 75ltv so dont be disheartened yet.

i did get a mortgage with halifax after being declined by my existing mortgage lender bm.

Tiddler_2

Your existing lender should be your starting point, as you are unlikely to get over 5.2 times your income.

The existing lender will not underwrite the mortgage, if it is staying on the same basis as your existing deal (same names & same amount).

simonts

Thanks for the comments people. I do find it affordable as I get another £450 above my salary a month but I cannot claim that nor prove it as income.

I think it seems possibly I might have to try and reduce the amount I am asking to around £121k, At this figure Alliance & Leicester and C&G were coming up as possible.

The previous lender was GMAC due to my now ex's more credit history and default.

Am I better to go to another broker or attempt directly with the lenders? I also assume Abbey rejecting me will show as a credit search?

herbiesjp

The Abbey will show up as a search - but it will not say anything like "decline"

I think you should go to another broker, especially in the current climate, as if you go direct and keep getting declined, all those credit searches could go against you

simonts

Thanks Herbie I will give that a go and see how it pans out.

I assume another option could be a guarantor?

herbiesjp

simonts wrote: »

I assume another option could be a guarantor?

It could - but you would need to look at that carefully, due to the potential tax implications for the guarantor

simonts

Herbie are you familar with Bank of Ireland? The broker did say something about having my old chap on the mortgage as he dosent have one but that BoI allow just one name on the deeds